TXT e-Solutions

Corporate OverviewSeptember 2015

2

FY 2014 & H1 2015 Results

5 years CAGR +11% p.a. 5 years CAGR +25% p.a.

Revenues: 55.9 m€ (+6.3%) 31.1 m€ (+13.2%)

EBIT 5.5 m€ (+10%) 2.8 m€ (+22.8%)

Free Cash Flow 9.3% of Rev. 10.2% of Rev.

NFP: 8.5 m€ 9.5 m€

FY 2014 (Actual) H1 2015

3

2010 – 2015: Growing EBITDA Margin & Rising the bar of Investments

R&D Investments: strengthen leadership: - 2010: 2.5 m€- 2014: 4.7 m€

Commercial Investments: foster Int’l growth:- 2010: 7.4 m€- 2014: 11.1 m€

33.7%

37.8%39.5%

40.3% 40.4% 40.1%

4

TXT Group: Major Growth Opportunities & Emerging Opportunities

International Software Vendor

Major Growth & Profit Opportunity, through

direct investments & acquisitions: Retail

• Integrated Planning & Product Lifecycle

Management Software …

• … for Fashion, Luxury & Specialty Retailers

Emerging Opportunity: CPG & Manufacturing

• Sales & Operation Planning and Supply

Chain Collaboration Software …

• … for CPG & Manufacturing Industries

Advanced System Integration

Mature Business, Int’l growth possible

through acquisitions: Aerospace & High-Tech

• Embedded Software & Simulation-based

Training solutions …

• … for Aerospace, Automotive & Transport

Emerging Opportunity: Banking & Finance

• Independent Testing of Software …

• … for Banking & Finance organisations

+13.4% vs. H1 2014+13.0% vs. H1 2014

40%

60%

TXT Retail – Major Growth & Profit opportunity for TXT Group

5

Strategy - Global leader in:Retail Planning solutions for Fashion, Luxury & SpecialtyRetailers: end-to-end, from collection to stores

Hong-Kong

Software44%

Services56%

Italy13%

Germany18%

France20%

UK & Nordics20%

Other Int'l12%

APAC2%

Spain2% North Am.

13%

Singapore

Expertise across categories & channels: Unique, Growing Customer Base of 300+

- 15 New Major Customers in last 12 months; 50+ Go-Lives of Major Projects …- … across all Segments & Geographies

6

Luxury Global Brands Fast Fashion Mixed Goods

Luxury Global Brands Fast Fashion Mixed Goods

Omnichannel End-to-End Planning, Collection Development & Collaboration

Omni-Channel: Stores & E-commerce

Pre-Season Planning:Merchandise & Assortment

In-Season Planning:Allocation, Forecasting & Replenishment

Supply Chain Visibility & Collaboration

Product Lifecycle Management:from Collections to Buying

Sessions

7

8

Omnichannel End-to-End Planning, Collection Development & Collaboration

In-Season Planning

Price, Promotion &

Markdown Planning

Store Replenishment

and Allocation

Category and Item

OTB

Store Transfers /

Return to DC

Assortment & Purchasing

Assortment

Plan

Purchase Orders

Initial-Allocation

Assortment Strategy /

Range Plan

ForecastingItem ForecastingCategory Forecasting Store Forecasting

Sales & Buy Planning

Strategic Plan

Merchandise Plan

Multichannel Sales Plan

Workflow Management, Performance Management, Monitoring, and Reporting

PLM

Samples Management

Trend Research &

Design

Line Planning

Concept/Design

Industrialization/

Sourcing

Supply Chain DC Replenishment

Supply Chain Visibility

and Collaboration

Production and

Distribution Planning

Mobile Catalogue

Preseason OTB

Recognised Leader in Fashion, Luxury & Specialty Retail

TXT Retail - Competitive Position: Leadership in the Target Markets

9Gartner Assessment across ALL types of merchandise

10

AgileFit: from SW Product to Business Best Practices Ready to Go

MitigateProject

Risk

Reduce Project Costs

Faster Time to Benefits

HigherROI

11

Committment to Innovate: 4,7 m€ invested in Product & Business Innovation

• Mobility: PLM & Planning on any device,

anywhere

• Total Cost of ownership: TXT On-Cloud

• Scalability & Performance with In-memory

Technology

• Assortments based on Consumer Analytics

Baseline organic growth, accelerated through targeted acquisitions, sustained by continuous

investments in product & business process innovation, self-financed through Profit & Cash

generated by the business & growing Stock value

TXT Retail 2015 & Beyond - Growth Strategy & Drivers: Expand Geography

12

2012-2014 2015 … Global Leadership

European Leadership Growing North America Start-up APACItalian Leadership

2000-2012

Baseline organic growth, accelerated through targeted acquisitions, sustained by continuous

investments in product & business process innovation, self-financed through Profit & Cash

generated by the business & growing Stock value

TXT Retail 2015 & Beyond - Growth Strategy & Drivers: Add Market Segments

2000-2014 2015 …

Fashion & Luxury Brands;Larger Retailers

Specialty Retailers; Larger Retailers

Multichannel & On-LineLarger Retailers

More Specialty Retail Formats(e.g. Department Stores, Malls, etc.)

Growing Range of Specialty RetailersSmaller, Lower-Tier Retailers

13

Baseline organic growth, accelerated through targeted acquisitions, sustained by continuous

investments in product & business process innovation, self-financed through Profit & Cash

generated by the business & growing Stock value

TXT Retail 2015 & Beyond - Growth Strategy & Drivers: Add Products & Services

2000-2014 2015 …

«Traditional» Services for Delivery & Support

… to «End-to-End Retail» VisionCustomer-Driven

Assortment Management

AgileFit Delivery Services Post Go-Live Managed Services

From Planning …

• Approx. 7 m€ in 2014;

• ~100 Key References across Europe

CPG & Manufacturing: Setting the Stage for Future Profitable Growth

Demand Planning

Advanced Supply

Planning

Production Planning & Scheduling

Procurement & Supply Chain Collaboration

• Value Proposition:

– Sales & Operations

Planning

– Supply Chain

Collaboration

• A solid position in a

still maturing &

fragmented market

15

TXTNext - Aerospace & High Tech: The “Engineering Division” of TXT Group

16

AEROSPACEAUTOMOTIVE &

TRANSPORTATIONHIGH TECH

CV CV CV

In-depth Industry Know-how:Since 30 years

Partner for our clients to boost their engineering capabilities

EMBEDDED

SYSTEMS

DIGITAL

MANUFACTURING

TRAINING &

OPERATIONAL

SUPPORT SYSTEMS

THROUGHOUT THE ENTIRE VALUE CHAIN

« Inside!»

Healthy & profitable growth around the «as-is» perimeter, building on a baseline revenues

stream from long-lasting relationships with core clients, and targeting International

opportunities, both organically & through Acquisitions.

TXT Next – Aerospace & High-Tech: Strategy & Drivers

2000-2005 2005-2014 2015 …Offering

Internet of ThingsEmbedded Software Simulation & Training Digital Manufacturing

2000-2010 2010-2014 2015 …Geographical

Expansion «Follow my Customers»in 24 Countries WWide

Organic Presencein UK & D

Organic Growth +Int’l AcquisitionsItalian Leadership

2000-2010 2010-2014 2015 …IndustrySegments

Start-up Hi-Tech Start-up TransportationConsolidate Aero Int’l

Grow Auto, Rail & High-Tech Aerospace (since ‘80s)

• Approx. 6 m€ in 2014; market focus: Italy

• A growing customer base of mid-large Banks

• Long-lasting relationships with healthy clients

TXTNext - Banking & Finance: Setting the Stage for Future Profitable Growth

18

since 2001

since 1999

since 2011

since 1993

since 2006

since 2010

since 1998

since 2013

since 2014since 2014

since 2014

since 2010

• Core Offering: Italian leadership in

– Independent Testing of Software: from

functional & performance testing to mobile

& security testing, under the push of Italian

& EU regulatory requirements

– Intranet Portal & Smart Working Solutions

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TXT in 2014, 2015 & beyond …

• TXT Retail

– A dynamic, large & growing Global Market, a sustainable leadership position (Products, Team & Customer Base),

multiple drivers of growth

– 2014: further consolidated Europe, significantly strengthened North America (Brand recognition, Team & Customer

Base) and major Product evolution (performance & scalability, usability, AgileFit)

– 2015 (and beyond) - the next step in our Global leadership journey: start-up APAC market, Cloud services, Customer

Analytics, continue searching for further targeted acquisitions

• TXT Next – Aerospace & High-Tech

– Highly fidelised customer base, partner of choice of all key Italian players, solid team and specialised know-how

– 2014: refined Value Proposition, grown Customer Base in Italy and consolidated operations in UK & D, started

seraching for acquisition targets in Europe

– 2015: continue developing organically and searching for targeted acquisition opportunities to accelerate

international growth

• TXT Group: 2 opportunities to drive, from a solid starting point, upside longer-term growth

– TXT Perform: S&OP and Supply Chain Collaboration software for CPG & Manfacturing Industries

– TXT Next - Banking & Finance: Independent Testing of Software for Banking & Finance organisations

APPENDIX – FINANCIAL DETAILS

H1 2015 Financial highlights

Revenues: € 31.1 million (+ 13.2% compared to normalized H1 2014) TXT Perform grew +13.0%; TXT Next +13.4%, Software revenues +36.6%: Service revenues +6.4%. 56% of revenues from outside Italy.

EBITDA: € 3.4 million (+13.7% compared to normalized H1 2014). R&D investments (+14.1%) Commercial investments (+12.8%)

EBIT: € 2.9 million (+22.8%).

Net income: € 2.3 million, or 7.5% of revenues

Net Financial Position at 30.6.2015: € 9.5 million

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H1 2015 – Growth of Revenues and R&D Investments

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€ thousand I SEM. 2015 % I SEM. 2014 (1)2014 non-

recurring

I SEM. 2014

"Normalized"(2)%

Var % vs

2014

Var % vs 2014

"Normalized"

REVENUES 31.126 100,0 28.972 (1.468) 27.504 100,0 7,4 13,2

Direct costs 14.878 47,8 13.464 (407) 13.057 47,5 10,5 13,9

GROSS MARGIN 16.248 52,2 15.508 (1.061) 14.447 52,5 4,8 12,5

Research and Development costs 2.716 8,7 2.380 2.380 8,7 14,1 14,1

Commercial costs 6.392 20,5 5.666 5.666 20,6 12,8 12,8

General and Administrative costs 3.764 12,1 3.431 3.431 12,5 9,7 9,7

EBITDA 3.376 10,8 4.031 (1.061) 2.970 10,8 (16,2) 13,7

Amortization, depreciation 519 1,7 643 643 2,3 (19,3) (19,3)

OPERATING PROFIT (EBIT) 2.857 9,2 3.388 (1.061) 2.327 8,5 (15,7) 22,8

Financial income (charges) (112) (0,4) (124) (124) (0,5) (9,7) (9,7)

EARNINGS BEFORE TAXES (EBT) 2.745 8,8 3.264 (1.061) 2.203 8,0 (15,9) 24,6

Taxes (405) (1,3) (607) 197 (410) (1,5) (33,3) (1,1)

NET PROFIT 2.340 7,5 2.657 (864) 1.793 6,5 (11,9) 30,5

(1) Official Financial Reporting.

(2) Income Statement H1 2014 includes non-recurring income of 1.468k€ and non-recurring costs of 407k€. In order to compare performance w ith

current year, f inancial results as of 30.6.2014 have been "Normalized" excluding non-recurring Revenues and Costs. Taxes have been calculated

pro-rata.

Strong Balance Structure

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€ thousand 30.6.2015 31.12.2014 Var

Intangible assets 15.414 15.079 335

Tangible assets 1.377 1.249 128

Other fixed assets 1.766 1.692 74

Fixed Assets 18.557 18.020 537

Inventories 2.461 1.821 640

Trade receivables 21.008 18.571 2.437

Other short term assets 2.265 2.197 68

Trade payables (1.687) (1.540) (147)

Tax payables (1.337) (1.117) (220)

Other payables and short term liabilities (14.959) (13.606) (1.353)

Net working capital 7.751 6.326 1.425

Severance and other non current liabilities (3.799) (3.841) 42

Capital employed 22.509 20.505 2.004

Shareholders' equity 31.972 28.970 3.002

Net financial debt (9.463) (8.465) (998)

Financing of capital employed 22.509 20.505 2.004

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Dividends & Shareholder‘s Return in the last 4 Years

• Dividends•2011: 1 € /share (extraordinary, rebased) •2012: Free Share Distribution 1:1•2013: 0.20 € /share (rebased)•2014: Free Share Distribution 1:1•2014: 0.25 € / share•2015: Free Share Distribution 1:10•2015: 0.25 € / share

•Share Price•31.12.2010: 1.51€/share (rebasedfor free share distribution)•17.9.2015: 7.64€ /share

TXT Market Capitalization (m€)

Free share distribution 1:1

25

Free share distribution 1:10

Free share distribution 1:1

Dividend 2.6m€

Dividend 2.6m€

Dividend 2.1m€

Dividend 10.3m€

Shareholding Structure – April 2015

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Market43,1%

Treasury Shares9,4%

E-Business Consulting25,6%

A. Braga Illa13,8%

Management8,1%